Recession? The Seven Dwarves don’t think so.

The GDP print last
week wasn’t amazing… but was actually pretty good according to these guys.

There was nothing in last week’s GDP numbers that made me
think that property’s run wouldn’t continue.

I mean, the numbers weren’t stellar, but they weren’t bad
either.

They painted a picture of an economy that’s still growing at
a reasonable pace, albeit more slowly than my generation might be used to.

But in the broader scheme of things, with economies all over
the world struggling to find second gear, our two most important trading
partners locked in a trade war, and now 28-years without recession, you’d have
to say it’s actually a pretty good result.

And to be honest, given where I thought we might be about
12-months ago, I’d say we’ve come through things pretty well.

What’s more, there’s still plenty of scope for the economy
to receive policy support if it needs it, while the more ominous storm clouds
seem to have passed without incident.

The way I see it, there are seven factors that are going to
support economic growth going forward. I see them like seven little dwarves,
dancing around the economy’s pretty blue skirt.

Let’s do a roll call. The Seven Dwarves are:

1. Cutty: The RBA has cut twice in recent months and it
looks like another one is probably on the way – possibly as early as next
month. At the same time, the Coalition is pushing on with their agenda to cut
taxes. Both of these will support growth in the short term.

2. Escapey – Over the past 12-months people have been
worried that the cyclical pause in the property market might gather momentum
into a serious correction. This hasn’t happened, and given momentum in the
market right now, doesn’t look like a near-term possibility. When prices hold
up, that supports people’s wealth and spending, which is also a positive for
the economy.

3. Spendy: Infrastructure spending is currently booming, and
thanks to strong trade data, and the budget is on path towards surplus. That
gives the government lots of spending firepower if it needs it. That’s a good
thing.

4. Dollars: With the US so far have the run of things in the
trade war with China, the US dollar is appreciating, which means the Australian
dollar looks to be going lower. That’s actually good news for us, particularly
our exporters.

5. Investy: The business investment outlook is slowly
improving. Ok, “very slowly” if we’re honest, but businesses have the cash on
hand, and lending rates are low, so there’s nothing holding business investment
back.

6: Exporty: Australia has a current account surplus, thanks
to a mini-commodities boom. That puts us in an strong external position –
there’s not going to be a run on the currency, and investor confidence in
Australia is going to remain high. You couldn’t ask for more on this front
really.